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Crypto Fear Gauge Hits Extreme Level Even As Traders Bet On Relief Rally

Bitcoin’s worry gauge plunged again into “Extreme Fear” on Wednesday — the identical day merchants flooded social media with bullish calls following the US Federal Reserve’s determination to carry rates of interest regular.

Sentiment Shoots Up Despite Grim Market Signals

The Crypto Fear & Greed Index, a broadly tracked measure of general market temper, had briefly climbed into plain “Fear” territory the day earlier than, solely to reverse course hours later.

Yet merchants appeared unfazed. According to sentiment platform Santiment, bullish chatter on social media spiked exhausting after the Fed introduced it could maintain charges unchanged at 3.5–3.75%.

The platform’s social media dialogue rating shot from roughly 9 to 71 inside hours of the announcement.

Bitcoin itself informed a distinct story. It was trading at round $70,150 on the time of the Fed’s announcement, down greater than 4% within the prior 24 hours.

Traders See Rate Hold As A Window For Gains

Santiment attributed the surge in constructive sentiment to a easy shift in dealer considering. The bearish value motion tied to the absence of fee cuts had already performed out a day earlier, the platform stated, leaving room for merchants to reframe the unchanged fee determination as a internet constructive.

Holding charges regular, the logic goes, no less than retains the door open for cuts down the highway.

Fed policy has lengthy formed how crypto market individuals learn the broader financial surroundings. Rate cuts, specifically, are seen as gas for danger belongings like Bitcoin.

Reports point out merchants had been watching the Fed’s strikes carefully all through 2025 as a possible set off for a bull run that by no means totally materialized.

The S&P 500 has shed 3.70% over the previous 30 days, in accordance with Google Finance information, including stress to an already skittish crypto market.

Analysts Warn A False Rally Could Be Taking Shape

Not everyone seems to be shopping for the optimism. Onchain analysts warned that what seems like an uptrend might be a bull lure — a false sign that attracts patrons in earlier than costs reverse decrease.

Some market observers anticipate Bitcoin and the broader market to stage a pointy rally as soon as equities discover a ground. Others made an analogous name earlier this week, saying on X {that a} “huge rally” is coming within the months forward.

The divide amongst analysts displays how unsettled situations stay. Social media buzz has spiked, however the worry index says one thing else fully. Whether the rally merchants are relying on exhibits up — or fades earlier than it begins — stays an open query.

Featured picture from Unsplash, chart from TradingView

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